You are hereForums / Users Forum -- Answers to Your Questions / Direct Individual (non-RC) EB-5 Cases / Fees by Investment Vehicles
Fees by Investment Vehicles
May a Direct EB-5 investment vehicle charge an administration/management fee? If so, must it be over and above the minimum $1 mill/$500k investment, or may it come out of the minimum? If the latter, what are the limits that USCIS would likely approve?
Thank you.
USCIS has no guidance and nothing to do on this issue. I guess for a direct, individual EB-5 case, some entity could charge some consulting fees for helping and advising throughout the EB-5 processing. The fee would depend on the services offered.
Can a consulting fee be classified as a business expense and come out of the required investment or must it be over and above that investment amount?
Along the same line, I have assumed that expenses such as local business licensing, permits, etc. can be out of the original investment. Correct?
How about a real estate commission if the investor buys property as a part of the business?
Thanks!
There is no clear-cut rule or USCIS decision on this issue. But for a direct, individual EB-5 case, I would say expenses such as local business licensing, permits, etc. can be paid from the investment amount. Consulting fees for the EB-5 project, if reasonable, should count also. Let's say the EB-5 project involves building a franchise restaurant, and there is a consulting fee charged by a third-party company to build-out the restaurant. In this case, the consulting fee should count, as long as there is evidence that these fees were paid.